Contrary to Opinion, Banks Aren't Fading

Francis, David R., The Christian Science Monitor

LAST May, economists John Boyd and Mark Gertler punctured a common myth about commercial banking: that it is a declining industry.

Banks, they said at a Federal Reserve Bank of Chicago conference, have not been losing market share in the United States to finance companies, investment firms, brokers, and other financial institutions. Rather, banks' share of total financial intermediation - that is, the taking in of deposits and making loans with that money - has been roughly stable over the last four decades. Banks perhaps suffered a slight loss of market share in the late 1980s and early '90s. But it was a transitory loss. Indeed, as their analysis implied, banks are now …

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Publication information: Article title: Contrary to Opinion, Banks Aren't Fading. Contributors: Francis, David R. - Author. Newspaper title: The Christian Science Monitor. Publication date: October 21, 1994. Page number: 8. © 2009 The Christian Science Publishing Society. Provided by ProQuest LLC. All Rights Reserved.

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